PARLIAMENT.

Feilding Star, Volume II, Issue 326, 25 July 1907, Page 3

PARLIAMENT.

HOUSE OF REPRESENTATIVES.

LifKR PRESS ASSOCIATION.] Wellington, July 24. In the HouseMr W. Fraser resumed the debate on the Financial Statement which was continued by Messrs Fisher, Buddo and Barber. The House adjourned at 5.30. Mr Barber resumed his speech on the Financial Statement, on the House resuming at 7.30. The debate was continued by Messrs Thomas, McLachlan, Izard, and Hanan. At 11.15 the Premier rose to reply. He commenced by analysing Mr Massey's claims to have originated the financial reforms announced in the Budget. Where had Mr Massey ever advocated a sinking fund for redemption of a war loan or for redemption of the loans raised for the purpose of acquiring land for close settlement? For special purposes a sinking fund was right, but he did not consider it necessary to have a sinking fund in connection with general loans. Why had the members of the Opposition not congratulated the Government upon paying out of revenue the sum of £150,000 towards the £750,000 paid in reduction of the national debt? It was quite true the Government was adding to the borrowed moneys of the colony, but it was not fair to make comparison with other colonies in regard to the national debt per head of the population. As against the criticism of Government's expenditure, the Opposition should not forget the development of the colony, and that last year the revenue was over £8,300,000, the greatest in the history of the colony. COLOSSAL HYPOCRISY. "What about the expenditure in Wellington?" continued the Premier. "What is the use of us indulging in nothing more or less than colossal hyprocisy in urging that the Government should keep down this loan money when every member knows that what I am saying is correct, that ever since the beginning of Parliament, the order paper has been crowded with questions asking for new railways, public buildings, increases in salaries and wages of public employees from to end of this country, concessions by getting some public utility service for less than cost price, and then they talk to their constituents about the enormous borrowing of the Government." A "WAR CONTRACT. Mr Allen had referred to an oats transaction in connection with the South African war, large quantities of which were found to be damaged. The impression might Jiave "been conveyed that the New Zealand Gov- . eminent had shipped these oats on behalf of the Imperial Government. That was not son. The New Zealand Government had no knowledge of these oats until three years after they had reached South Africa, and the assumption that the New Zealand Government had acted recklessly through want of care on the part of its officials was absolutely without; warrant so far as this Government was concerned. For anyone to try and impute to this country any ot the blame attached to the condition of the oats three years after the shipment was quite unreasonable, and the Army War Council recomemnded that the matter should not be pursued further so far as New Zealand was concerned. THE CUSTOMS CHANGES. For ten months the Minister for Customs had been collecting opinions, every branch of industry having had an opportunity of bringing forward its claims. If members looked at the expressions of opinion on the tariff they would find— and he had no hesitation in saying it— that there had never been an adjustment of the tariff in this colony which had given such general satisfaction. They were quite prepared to reconsider some of the proposals. The whole matter had been gone into with a view to helping our industries and giving relief in connection with the necessaries of life, and in doing away with a large amount of revenue they had tried not to weaken the colony s financial position, so they had suggested £121,000 extra revenue, mainly upon the preferential tariff, thus giving further encouragement to those who preferred British products. If it could be shown lihat alterations were required in connection with bicycles and pipe-casings, and that the articles named could not be made m the colony, they were jg-epared to consider the matter. While maintaining a strong finance they were not going to put upon the dutiable list any articles which would help people to have cheaper food and clothing. THE CASE FOR MOTOR-CARS. Here let him say a word about motorcars. There appeared to be an idea that this was an item intended to benefit the rich. They knew the rich in this country got their motorcars now, and could afford to pay duty, but' motor-cars were put upon the free list in consequence of information furnished to them, and rightly so, with the idea of allowing a certain class of people to get motor-cars for trade and industrial purposes. There were 3000 motor-cars of all clases in the colony, and it was a very small proportion of those which were used merely for pleasure. If there were 20,00 Oof them it would give employment to certainly twothirds the number of people now employed in the Railway Department. They were quite prepared to put motor-cars on the dutiable list, leaving those parts to come in free that could not be made in this country. (Hea LANI) r AND INCOME TAX. He knew that members were prepared to go further than the Government's proposals went. But, if they looked at the Government's proposals in globo, they would recognise that there was a compromise made in the direction of allowing this country to have advanced land legislation to meet the conflicting conditions, and very great importance attached to the system of taxation. There were members who urge dthat the taxation proposals should commence at £20,000. (Hear, hear). But he wanted members to look at the whole position of the colony. The Government's proposals commenced at £40,000, and that meant an actual increase of £90,000 a year. What took place 'when an increase in the graduated tax was made in 1894-5? The total amount of the increase was £23,000 pet annum. It had not had the effect originally intended. In the years 1904-5-6 the graduated tax produced £120,000. The Government was not taking a penny piece off that, but adding to it £90,000 a year by commencing at £40,000. The Government would have £125,000 of graduated tax upon large estates from their present proposals! including the ordinary tax produced from the lower grades imposed. Those who were urging the Government to make a movement in the direction of bringing in the whole of the owners of property immediately could not have considered' the position or the effect that such an afterii tion would have. In the taking of estates in the past they had had the position of the Commissioner of Taxes doing his best to keep the right value, and the owner saying, "I object to your valuation,'* and the Government was compelled to take the property at the owner's valuation plus 10 per cent. The ordinary value of the land had not been put on except at the point of the bayonet by the Valuation Department, because the large owner knew that he only had to stand out and go to the Arbitration Court, where witnesses familiar with the productive capacity of the land were brought to show that it had earned a certain percentage, -with the inevitable result that land had gone up to a point it should not reach if they wanted to have future settlement on fair lines. To prevent the recurrence of this condition of affairs the Government had submitted fair proposals. What would happen under the Government's proposals? As soon as they were on the statute-book they would find that owners would realise that in future it would be well to see land when the Government wanted to purchase for settlement. Mr W. Fraser: How?

Sir Joseph Ward : The Government has found throughout this country that land worth £4 and £5 per acre when wanted for settlement purposes has gone up to as much as £20 per aore, and there are many people who

don't realise that the colony had to respond and give prices beyond the ordinary value under the system that existed. No man had a right to ask the people of New Zealand to keep a law on the statute-book that was going to be the cause of an improper inflation of land. The present proposals were not only intended to check this procedure, but to impress upon land-owners that while the Government was prepared to pay a fair value, it was not going to allow any combination of owners to enforce an unfair value when the Government wanted to buy land for the people. The spirit of compromise had nad to be exercised in connection with all the land legislation brought forward proposals which fairly and reasonably focussed the different requirements which had to be met. WHO STARTED THE AGITATION? It was not the Government who started the waging of the land war It was Mr Massey and his friends— he was not imputing any improper motives to them — who started the agitation to convert to the freehold the whole of the ordinary lands which had been leased. Mr Massey: What about the Fair Bent Bill? The Premier reiterated that the agitation for the freehold was started by the Leader of Opposition and his friends. He went on to characterise as fair and reasonable the Government's proposal that tenants holding the 999 years' lease of Crown lands should be asked that they should pay the current value if they required the freehold. (Hear, hear.) If they did this they were entitled to it, and members who held the belief that none of the national estate should be parted with should remember that if they wanted to secure a great reform in one direction they must compromise in another, and this proposal was earnestly put forward by the Government in the hope of settling a di;cult question. (Applause.) The House rose at 12.25 a.m.